HK Stock Market Move | Red Star Macalline Group Corporation (01528) surged more than 22% in mid-day trading. Government subsidies are expected to catalyze demand for home renovation, and the company is implementing a new retail model for home furnishings consumption.

Red Star Macalline Group Corporation (01528) rose more than 22% in midday trading, and as of the time of writing, it was up 9.97% to 3.64 Hong Kong dollars, with a turnover of 187 million Hong Kong dollars. Huaxi pointed out that Red Star Macalline Group Corporation actively responded to the national call and fully connected to the government platform in nearly 20 provinces and 223 shopping malls from October 13 to November 11, promoting the "trade-in old for new" initiative on a large scale. The policy, which was introduced earlier in Shanghai, has begun to show results. During the National Day golden week, the company's 8 shopping malls under its management generated sales of 143 million yuan from October 1 to 7, an increase of 112% compared to last year, with 16,200 effective store visits, a 24% increase over the previous year, achieving both customer traffic and sales growth. With the gradual improvement of the scope of government subsidies, the demand for home renovation in Q4 is expected to be further catalyzed. Tianfeng pointed out that Red Star Macalline Group Corporation and strategic investor Alibaba are jointly exploring the layout of the new retail sector in home furnishings, taking the lead in implementing a new retail model for home consumption. The company is digitizing its shopping malls nationwide, establishing an online "Tmall City Station", and building its own new retail online product operation and service capabilities. At the same time, the company supports traditional distributors in various aspects such as product selection, digitalization, and traffic reception to enable them to operate online, thus effectively and timely converting online traffic to offline shopping mall experiences and transactions, empowering merchants and providing consumers with a better home shopping experience.